Erickson Retirement scuttles plans to invest $12B in 50 new retirement projects - Baltimore Business Journal:

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The Catonsville company said it is scrapping plansw to build new senior housing facilities in five states and has put projectss in Missouri and Atlanta on hold as the economy continuesto lag. Erickson spokesmanm Mel Tansill declined to identifythe company’sw new goal. The company said its missio n to serve as many seniores as possible hasnot changed. “We are aligninv our resources so we can continue to offe r our residents affordable lifestyles durinv this difficult national economic the company said ina statement.
Tansill also offerede few details on why it has scrappedr plans to building new communities in New Jersey, Minnesota and which would have had up to 1,500 apartmentr units each. These projects, whicnh cost more than $500 milliojn combined, did not meet Erickson’d “acquisition standards,” Tansill said. The compangy determined after analyzing market conditions that the sitesd werenot suitable, he said. Tansill declined to elaborate. A lack of financingh for these projects that costbetwee $200 million and $400 million has forcede Erickson to scrap or delag many of its plans.
Earlier this month, Ericksonn said it has abandoned planx to develop senior housing on a historic propertu in Howard County because ofthe economy. In Erickson delayed construction ofan 1,100-unity complex in Charlotte, N.C. The companyg hopes to resume that project, and others in Atlanta and St. when it can afford to do so, Tansill One reason Erickson’s projects are so tough to finance is that they are so large and the bigger the equity deal the toughert it is to get saidJohn M. Black, senior vice president at LLC in It’s tough to fund anythingb morethan $50 million, he said: “Bigger is not alwaysx better these days.
” Another reason why Erickson is facing tough timesa is because of the sinking housinv and stock markets, said Melissa Peters, a vice president at LLC. Ericksonm residents pay a deposit fee starting at on top of monthly fees that start at Many seniors that once used their home salew or stock market earnings to pay the deposit can no longerdo so, said whose company finances seniofr apartments.